The
OCT, LLC has assembled more than 23,000 gross/net acres
along the Owl Creek thrust trend and Madden Field areas of
the northeastern portion of the Wind River Basin, which are
being offered for sale as an exploration and development
opportunity.

The
Noble Ridge Unit consists of 23,682.31 acres adjacent to and
north of the Madden Unit. A 15,000' Lance test is proposed
as the initial required unit well to be located
NENE-3-T39N-R90W. The required Unit well will need to be
drilled after July 16, 2006 and before November 15, 2006, as
defined by current lease and access road stipulations.

The
circuit, arcing geometry of the Owl creek thrust at the
Noble Ridge, combined with a thick, south dipping subthrust
stratigraphic section results in a potential Lower Ft.
Union/Lance field approximately 8-10 miles long by 3 miles
wide.

Lance
development drilling potential could reach more than 500
wells, based upon 40 ac spacing.

An
additional 14,800' Lance development well is proposed on a
386-acre fee lease within the Madden Unit Boundary. The
Philp-Knapp No. 1-18, NWSW-18-T39N-R39W, targets 1090' feet
of CNL-FDC gas pay found in an offset well, the Shelter No.
1-19. Completion of this development well will have an
immediate economic impact.

Air-mag
and 2-D CDP seismic data confirm the low angled nature of
the thrust which sets up a highly prospective subthrust
fairway, which is 12-18 miles wide by 50-60 miles long and
has been overlooked by previous exploration efforts.

The
Lance Formation in the northeast portion of the Wind River
basin is approximately 5000' gross thickness with up to
2000' net sand. Both the upper and Lower Cretaceous section
are expected to be geopressured up to a gradient of 0.55
psi/ft.

Improvements
in drilling technologies have reduced overall costs,
drilling times, and reservoir damage, while the use of flow
through composite frac plugs results in higher initial flow
rates and ultimate gas reserves.

Multiple
subthrust gas prospect areas have been identified in this
gas-rich, high economic impact area. These prospects utilize
the Madden and Cave Gulch Fields as geologic analogs and
could be further delineated with 3-D seismic surveys.
Burlington Resources is presently permitting an approximate
60 square mile 3-D survey covering much of the Noble Ridge
Unit Area.

The
submitted leases target exploratory potential for large
subthrust anticlinal structures with potential reserves
ranging up to several TCFG and multi-million barrels
condensate from the Madison Formation as well as the
shallower pays of the Shannon, Frontier, Mesaverde, Lance,
and Ft. Union Formations

Introduction

Oil
and gas exploration in the Madden and Cave Gulch Field areas
of the Wind River Basin dates back to the early 1950's. The
Pure Oil, Badwater No. 1, was drilled to 11,143' on what was
then termed the Badwater structure in 1949. The well was
deepened in 1957 to 16,869' and tested gas from 223' of pay
in the Lance Formation. The Field was later re-discovered in
June of 1968 by Wolf Exploration by the drilling of the
Madden Deep Unit No. 1, located NWSW-2-T38N-R90W. Madden
Field is characterized by thrust fault bounded anticlinal
geometry and gas production from multiple stratigraphic
horizons of the Lower Ft. Union, Lance, Mesaverde, Shannon
sands, and the Madison dolomite. The field covers more than
30 square miles and is located about six miles south of the
surface trace of the north dipping Owl Creek Thrust. Severe
seismic velocity variations which masked the true structural
relief and formation damage caused by drilling and
completion fluids, slowed initial continuous development of
the field.

Burlington
Resources is the current operator of the Madden Field.
Burlington has focussed their efforts on the prolific
Madison dolomite, located at depths of 25,000'. Gas reserves
for the Madison Formation are estimated to range between 2.6
to 4 TCFG, with net pay reaching 250' and a proven gas
column of more than 1200'. Initial daily production rates
per wellbore range from 40-50 MMCFGPD. These rates have been
constrained due to processing capacity. These wells are
capable of higher rates as calculated AOF's of more than 150
MMCF have been recorded. The Madison is currently
producing 8-9 BCFG per month from 7 wells. This is about 300
MMCFGPD gross production from the Madison Formation., oran
average 43 MMCFGPD per well.

Produced
gas from the Madison contains about 12% H2S and about 21%
CO2. The remaining hydrocarbon content is essentially
methane. Burlington has recently doubled the plant's gross
inlet capacity from the 130 MMCFD to 310 MMCFD. The plant is
presently in operation.

Burlington
Resources has improved Lower Ft. Union economics by
employing a 100 well slim hole drilling program, targeting
the uppermost 500' of the Lower Ft. Union formation.
Utilizing a rig dedicated to slim hole technology,
Burlington has realized cost reductions a now drills these
wells in less than 7 days.

Burlington
has additionally focused their efforts on the Frontier
formation and plans a pilot coalbed methane program in the
Lower Ft. Union.

The
Lance has produced approximately 40 BCFG in the Madden Unit
Area. The productive potential of the Upper Cretaceous was
only in part understood. The Cody Formation was generally
the target of earlier wells, and the Lance Formation was
rarely tested. Fieldwide downdip limits have not been
identified in the Cretaceous reservoirs. Presently, these
sands have been the subjects of improved drilling and
completion technologies as well as the advances in 3-D
seismic acquisition and interpretation. Improved
transportation out of the area has resulted in continued
activity.

The
Bullfrog, Waltman, and Cave Gulch areas followed a similar
development history. The Chevron Waltman No. 1 was drilled
during 1959 to a total depth of 11,899' in the Cody Shale.
Both the Lance and the Fort Union were found to be
productive. Subsequent development drilling sporadically
continued over the next 40 years continuing with the Barrett
Resources Cave Gulch No. 1 discovery in December 1994. The
discovery of the Cave Gulch Field has sparked a re-newed
interest for Cretaceous subthrust targets along the footwall
of the Owl Creek Thrust.

Regional
Setting

The
assembled acreage is located on the northeast flank of the
Wind River Basin in central Wyoming, approximately 90 miles
northwest of Casper. It is located along the Owl Creek
thrust on trend with Cave Gulch Field and within the
boundary of the Madden Unit. The northeast flank of the Wind
River Basin was also the depocenter for both the Fort Union
and Lance Formations.

Cave
Gulch Field

The
Cave Gulch Field was discovered by Barrett Resources by the
drilling of the Cave Gulch Federal No. 1 located
NENE-31-T37N-R86W in Natrona County, Wyoming. The prospect
was based upon the realization that the Waltman No. 1,
SW/4-31-T37N-R86W, had produced more than 18 BCFG, but had
never been offset to the northeast. The well was drilled
north of the Waltman Field through the Owl Creek thrust into
the Upper Lance Formation. The well encountered 481' net pay
in a 2200' interval of the Lance and the Fort Union
Formations. This well flowed 10 MMCFGD and has produced
about 17.1 BCFG and 73.6 MBC from perforations in just 246'
of pay between 5742 and 6811' through March 2002. Gas
production for the Cave Gulch Federal No. 1 averaged about
900 MCFD during 2005

The
Cave Gulch Unit encompasses just 440 acres.

Continued
development at Cave Gulch has resulted in successful
completions in the deeper pays, including the Frontier,
Muddy, Dakota, and Lakota Formations. The Muddy has huge
potential as evidenced by the Cave Gulch No. 1-29, which
blew out and produced up to 100 MMCFGPD through drillpipe to
the sales line. Cumulative production has reached 13.6 BCFG
from Muddy perforations at 18,154' to 18,204'. The offset,
the Cave Gulch No. 3-29 tested up to 61 MMCFGPD from
perforations at about 16,750' to 18,148' and production has
totaled 14.3 BCFG. Moncrief has recompleted the No. 16-1
Teepee Flats, NESW-16-T37N-R86W for 8 MMCFGPD from the
Muddy.

Regional
Structure

The
Owl Creek thrust is an east-west trending low angle thrust
fault that overrides the north flank of the Wind River
Basin. The Owl Creek thrust fault and it's associated faults
and en echelon folds dominate the prospect area. Detailed
surface mapping indicates at least two periods of activity
along the thrust. Northwest trending structures, which can
be 6-10 miles long, predate a younger east-west trend.
Northwest trending structures were uplifted during late
Cretaceous and Paleocene time, while the east-west system
was uplifted during the early-middle Eocene. The Owl Creek
Range was uplifted and thrusted over the subsiding Wind
River Basin during the Eocene and truncated the previously
existing northwest trending structures, similar to features
along the Casper arch. Horizontal displacement along the
fault trend ranges from 12 to 18 miles

Exploration
efforts have previously focused upon anticlinal structures
located in front of the surface trace of the Owl Creek
Thrust, such as the Madden anticline. To date, there exists
a 12-18 mile fairway beneath the thrust, which is 50-60
miles long and is virtually unexplored. Established gas
production from the Fort Union, Lance, Frontier, and Muddy
Formations at Cave Gulch, and from the Frontier and Muddy
Formations at Tepee Flats prove the extraordinary potential
of this prolific trend.

Stratigraphy

The
Tertiary Lower Ft. Union, the Cretaceous Lance, Mesaverde,
Frontier, Muddy and Mississippian Madison Formation are the
primary targets in the project area. The NE portion of the
Wind River Basins contains more than 26,000' of sedimentary
section.

Sandstone
reservoirs of the Lower Ft. Union and Lance Formations are
gas saturated throughout the Project area. The stacked
fluvial sequences of the Lance and Lower Ft. Union are
approximately 8400' thick where preserved and have an
east-west trend. Lower Ft. Union sands immediately
underlying the Waltman shale have been an important target
in both the Madden and Frenchie Draw areas. The lower part
of the Lower Ft. Union and Lance are described as
interbedded lenticular sandstones and shales, ranging from
10-50' thick. These units generally exhibit gas effect on
CNL-FDC logs. Log calculated porosities may reach 20% in the
better-developed sands and natural fractures enhance
reservoir permeability. X-ray diffraction analyses of the
Lance at Cave Gulch field indicate the presence of kaolinite
(31-55%), illite/smectite (10-49%), chlorite (13-28%), and
smectite (8-14%).

The
Meeteetse Formation and the Lewis consist of interbedded
sands, coals, and shales throughout the project area. These
sands generally exhibit CNL-FDC gas effect where log
porosity exceeds 8%.

The
Mesaverde is approximately 1200' thick at Madden and can be
divided into three members. The uppermost unit is the Teapot
sandstone. The middle member is usually non-productive and
is a series of non-marine sands, shales and coals. The
lowermost unit, informally named the Fales sand, is about
200' thick and is productive throughout the Madden area. The
Fales sand is described as very fine to fine grained,
calcareous, well sorted, and contains variable clay content.
The Fales is interpreted to represent sands deposited in a
prograding barrier bar environment. The original pressure
gradient in the Mesaverde is 0.73 psi/ft.

The
Cody shale contains the Sussex and Shannon sands. The
Shannon sands are described as two coarsening upward bar
sands that range in thickness from 10-60'. Shannon
reservoirs are geopressured to a gradient of 0.76 psi/ft. at
Madden. Although many Shannon reservoirs appear to be tight
based upon log analysis, the zones have produced significant
volumes of gas due to reservoir enhancement due to naturally
occurring fractures.

The
Upper Cretaceous Frontier consists of a series of coarsening
upward, lenticular sequences ranging up to 20' thick. Log
porosities can be 15%. Mudlog gas shows are common in the
Frontier at Madden.

The
Muddy sand has been a very important producer at Cave Gulch
Field, and flow tested gas at Hells Half Acre. It is
believed that a Muddy thick extends across the northeastern
area of the Wind River Basin.

The
Mississippian Madison Limestone was deposited on a broad
shelf and is about 400' thick. It consists of interbedded
limestones and dolomites with occasional ooilitic
grainstones. Net pay can reach 250'.The Madison is more
dolomitic eastward along the Owl Creek Mountains. The
Madison dolomites at Madden are found at 25,000' drill
depths and display porosity up to 15%.

Noble
Ridge Unit Area

The
Noble Ridge Unit contains 23,682.31 acres. The proposed well
will play off the structural style of the Owl Creek thrust
system where the primary thrust has overridden the
northwestward continuation of the Badwater anticline. The
relatively low angle of the Owl Creek thrust fault leaves
room for both Upper & Lower Cretaceous strata through
the Madison underlying the thrust. The initial required test
well is located along the leading edge of the Owl Creek
thrust, analogous to the Cave Gulch Field.

A
15,000' Lance test is proposed for the NENE-3-T39-R90W. The
location will test an approximate 7500' thick series of
Lower Ft. Union and Lance sands, which dip south and flatten
into the leading edge of the Owl Creek thrust. This section
should be as complete as the Lower Ft. Union and Lance
sections located at the Madden Field. This is analogous to
the published 2-D seismic lines that were utilized in the
original Cave Gulch field seismic interpretation.

Philp-Knapp
No. 1-18 Proposal

The
Philp-Knapp lease is located in Sections 7, 13,
&18-T39N-R90-91W within the Madden Unit Area. Structural
mapping utilizing subsurface data at the top of the Lance
indicates that the proposed location will test a series of
Lower Ft. Union and Lance sands on the north flank of the
Madden Unit. The Lower Ft. Union and Lance Formations are
gas saturated yet only sparsely tested in this area of the
unit. Review of the available seismic data in the area
indicates the presence of possible deep-seated faulting en
echelon to the Madden anticline and primary Owl Creek thrust
fault. Review of aerial photomap data indicates a
deep-seated structural feature north of the Shelter No.
1-19.

Correlation
of individual sands in the fluvial section of the Lower Ft.
Union and Lance is impossible even at 40-acre spacing. Gas
recoveries indicate the presence of a much larger gas
reservoir. Natural fractures associated with east-west
trending faults and vertical and lateral variations in
sandstone deposition have compartmentalized a large gas
accumulation along the north flank of the Madden anticline.

Monsanto
drilled the Shelter 1-19, NWNW-19-T39N-R90W, on February 5,
1979 and completed the test March 31, 1980 from perforations
in the Shannon at 18,790-19,253'. The well was fraced
with 229,000 gal water, 250,000 # sand, and flowed 1,200
MCFGPD and produced 56,680 MCFG + 7,881 BW. Last production
from the well occurred in 1980.

During
the late 1970's and early 1980's the Shannon sands of the
Cody Formation were the primary targets at Madden. Over the
past several years, the emphasis has focused more on the
Lower Ft. Union sands, the Lance, and the deeper Madison
Formation.

Analysis
of the Density-Neutron log indicates that numerous
gas-saturated sands are behind pipe. The Shelter No. 1-19
logged 61 pay sands in the Lower Ft. Union and Lance
identified by gas effect occurring on the Density-Neutron
log combined with an 8% porosity cut-off. Thickness of net
pay sands in the wellbore totaled 1090'. Thickness of
individual sand bodies ranged from 4-54' and averaged almost
18' per unit. Porosity in the sands ranged from 8-13%, with
a few sands in the 14-16% range. Mud log gas shows over
these same intervals indicate a gas saturated section.

Drilling
of the Shelter No. 1-19 took more than a year to reach total
depth. Sands of the Lower Ft. Union and Lance Formations
were likely damaged by the length of time the drilling
fluids were on the formation. Wells were completed with sand
and water fracs during this era resulting in additional
damage to the reservoir. Today, wells are drilled in 3-4
weeks and completed with inert gas foam fracs and sand.

Burlington
Resources has completed the MDU No. 8-23, SWNE-23-T39N-R91W,
in June 2003, flowing naturally at 3.3 MMCFGPD from
perforations at 6882-90', 6908-12', and 6926-30'. These
sands directly underlie the Waltman shale that has been the
target of Burlington's most recent activity. Log calculated
porosities are in the 14-16% range. This well is arguably
the best well in Burlington's 50 well shallow Madden Unit
drilling program.

Burlington
Resources recompleted the Mesa-Federal No. 1-14,
SWNW-14-T39N-R91W in several zones within the Lance below
15,000'. The well flowed 1060 MCFGPD + 53 BWPD from Lance
perforations at 15,010-020', 15,072-082', 15,168-180',
15,250-282'. This well is about one mile west, and it is
approximately 1000' structurally low to our proposed
location. The Mesa Federal was originally drilled to the
Cody in November 1980 and completed for 60 MCFGPD from
perforations at 20,048-20,212'. There was no known
production reported from the Cody. Petrophysical analysis of
the Density-Neutron log indicate 978' gas pay in 55 zones in
the Lower Ft. Union and Lance Formations.

Double
Eagle Petroleum has completed their Allen Deep No. 1,
located SENW-26-T39N-R90W, for 3.5 MMCFGPD from the Lower
Ft. Union Formation. The well was drilled to a total depth
of 12,150'. High pipeline pressures of over 1,100 psi had
initially restricted production rates. Cumulative production
has totaled about 500 MMCFG from perforations in thin Lance
sands. This extends the Lower Fort Union production
one mile north of Madden Fields previously known limits.

Double
Eagle has offset the Allen Deep No. 1 with the Lloyd No.
1-26, NWNE-26-T39N-R90W, drilled to total depth of 7225' on
August 5, 2000. Mud log shows in sands of the Lower
Ft. Union immediately underlying the base of the Waltman
shale indicate productive potential. This well is waiting on
a frac.

The
Barrick No. 1-24 Leonard, located NWNW-24-39N-90W, was
completed in January 1984 flowing 3881 MCFGPD from
perforations at 14,628-14,688'. Cumulative production
totaled 867 BO + 538,156 MCFG + 2,987 BW. Date of last
production was mid-1997 while the well was being operated by
KCS Mountain resources. This well had numerous mud log gas
shows, flowed gas during drillstem testing, and exhibited
Density-Neutron log gas effect throughout several zones in
the Lance and Fort Union Formations. It is important to note
that this test, if drilled using current drilling and mud
engineering technologies, could be drilled in less time than
the 110 days required in 1984. The numerous zones having
similar petrophysical characteristics as the Barrett
Resources Cave Gulch discovery could be completed using
state of the art frac technologies resulting in large volume
gas production. Double Eagle acquired the Leonard No. 1-24
and flowed gas at rates of more than 2 MMCFGPD from 13,300'
during June 2000 workover.

A
drillstem test of the Lower Ft. Union in the Leonard No.
1-24 from 7,128-7,229' flowed gas at a rate of 2,272 MCFGPD.
This indicates a gas column of more than 1500' ranging more
than 8 miles long, at least as far west as the Mesa-Federal
No. 1-14, and without an identifiable gas-water contact.

Several
key wells also indicate the potential of the Madden
anticline off what is believed to be the anticlinal axis.

The
Pure Oil, Badwater Unit No. 1, located NENW-35-39N-89W was
completed in November 1957 flowing 5500 MCFGPD on 1/2" choke
from perforations at 15,216-16,472'. Unocal relogged the
well with a TDT tool 20 years after the initial test. The
TDT tool logged 22 zones displaying gas effect between
12,300-14,150'.

The
Moncrief Badwater Creek No. 1, located SWNE-12-38N-89W,
drilled by Moncrief in 1991, was originally set up as a
24,500' Madison test. This test is located about 12 miles
east of our proposed location on the easterly plunging nose
of the Madden anticline. Due to the unexpected thickening of
the upper formations, drilling operations ceased at 20,080'
in the Cody Shale. Production casing was run to a plug back
depth of 14,600'. Completion data from March 30, 1991
reports an IP of 1,790 MCFGPD from perforations at
13,926-14,022. No frac treatment has been reported. This
well is reported to have had 26 zones exhibiting gas effect
on the Density-Neutron log between the depths of 11,150 and
14, 050'.

Birdseye
Creek Prospect

The
Birdseye Creek Prospect is characterized as a subthrust
Lower Cretaceous and Mississippian Madison plays. The play
is set up by the CIG Exploration No. 1-4-39-94, located
NWNE-4-T39N-R94W. The well was spudded October 1978 and
drilled to a total depth of 17,550' in the Cody. A drillstem
test from 15,575-886' flowed gas to surface in 206 minutes
at 1300 MCFGPD. Times and pressures are described as: op
426, SI 137, op 71, SI 361, 1200' WC, FP: 9,146-11,326,
5557-5209, SIP: 8254-8254, HP: 12,252-12,380. A
drillstem test from 15,637-886' flowed gas to surface at
1,100 MCFGPD. Dipmeter analysis of this well indicates 45-50
degree south dip beneath the thrust cut at about
6140'. The play is fortuitously located in a crestal
position on an anticlinal feature bounded by the CIG well on
the south flank and postulated rollover in the Owl Creek
thrust. Mapping of the air-mag indicates a basement
structure approximately 2 miles wide by four miles long.
Total depth for a Mississippian test will be in the 17,500'
range. The Birdseye Creek area has multi-TCF Madison
potential at moderate drilling depths.

Gas
Marketing

Lost
Creek Gathering Co., L.L.C., formed by Burlington Resources,
Inc. has completed construction a 127-mile, 24-inch diameter
natural gas gathering system. The pipeline is expected to be
able to deliver an additional 120 MMCFGPD from the Madden
Field area into the Colorado Interstate GasCo and Wyoming
Interstate GasCo pipelines without compression and
approximately 275 MMCFGPD with compression. The completion
of these facilities has enhanced gas-marketing capabilities
out of the area. The completion of the Kern River
expansion and the approval of the Cheyenne Plains project to
move gas eastward has resulted in a closure of the Rockies
basis differential and overall higher gas prices.

Summary

Improvements
in drilling and completion technologies have been the
primary reason Burlington Resources and Barrett Resources
has been successful in the prospect area. The universal use
of downhole motors has been a major advantage. The current
drilling plan drills to total depth at 15.000' in the Lance
in 65 days, where in the past, the Lance was subjected to
drilling fluids for 3 to 4 months during the drilling of a
deeper test, causing almost irreversible formation damage.
The use of flow through composite plugs allows gas to flow
up the wellbore while testing additional zones without
having to kill the well with water. These plugs are set with
wireline resulting in rigless completions, further reducing
costs.

Earlier
2-D seismic surveys across the Madden anticline and the Owl
Creek thrust trend were next to impossible to accurately
interpret due to extreme velocity problems caused by
thousands of feet of gas saturated Upper Cretaceous and
Tertiary Formations and by velocity variations in the
Waltman shale. The current state of 3-D seismic technology
has led to drilling successes in this structural and
stratigraphically complex area. Burlington Resources has
completed a 68 square mile 3-D survey over the prospect
area.

Development
drilling in the Madden Field continues to target potential
pays from 6000' to the Madison at 25,000'. Advances in
drilling technologies have reduced well costs. Modern 3-D
seismic enhances reliability of interpretation resulting in
increased exploratory success. These factors make the area
an attractive development play with ultimate reserves
ranging to 220.4 BCFG and 1 MMB condensate.

Formation
of the Noble Ridge Unit is a key strategy as it allows us
to: